KUALA LUMPUR (June 10): Petroliam Nasional Bhd (PETRONAS) will supply up to approximately two million tonnes per annum (MTPA) of liquified natural gas (LNG) to Japan, over a 20-year period.
The sales and purchase agreement (SPA) for the LNG supply signed between its wholly owned subsidiary PETRONAS LNG Ltd (PLL) and Japan's largest power generation company, JERA Co Inc, will come into effect starting in 2028, according to a statement on Wednesday.
The SPA follows a memorandum of understanding signed in June 2025 to expand collaboration between the two countries across the LNG value chain.
This reinforces PETRONAS’ position as a core supplier to Japan, one of the world’s largest LNG importers, now looking to reduce dependence on Middle Eastern oil.
Japan imports about 15% of its LNG from Malaysia, its second largest source after Australia, which accounts for about 40%.
The agreement deepens a relationship that dates back to 1983, when Malaysia shipped its first LNG cargo to Japan.
The parties commemorated the latest agreement in Tokyo, attended by PETRONAS executive vice-president and chief executive officer of gas and maritime business Datuk Adif Zulkifli, and JERA senior managing executive officer and chief low-carbon fuel officer Ryosuke Tsugaru.
“We value the strong partnership we have built with JERA over the decades, underpinned by mutual trust and a shared focus on reliability. We look forward to building on this foundation as we continue to support Japan’s evolving energy needs," Adif said.
"In an increasingly dynamic LNG market shaped by rising demand, supply security concerns, price volatility, and shifting consumption patterns, PETRONAS remains focused on delivering reliable and tailored solutions, supporting our partners in strengthening energy security while advancing their transition ambitions,” he added.
Ryosuke, meanwhile, said: "PETRONAS is one of the world’s largest LNG suppliers and has been an important partner to JERA for nearly four decades, and this agreement marks another step in that long-standing relationship. As the global LNG market continues to face uncertainty, long-term partnerships with reliable suppliers are essential to building a resilient portfolio. This agreement reaffirms JERA's commitment to securing the LNG needed to support energy security in Japan."
The signing of the agreement signifies the transformation from traditional point-to-point LNG supply agreements to a more flexible LNG supply arrangement, which further underscores PETRONAS’ position as a reliable LNG supplier through the expansion of its supply capabilities, the statement read.
LNG will be delivered using PETRONAS’ new generation of 174,000-cubic-metre LNG carriers, designed to comply with the International Maritime Organization’s enhanced emissions standards, supporting more efficient and lower-emission operations.
PETRONAS continues to advance its commercial approach to meet Japan’s evolving requirements in line with the 7th Strategic Energy Plan to ensure stable energy supply, while improving economic efficiency, and environment priorities as demand evolves, according to the statement.
JERA, meanwhile, will continue to build a balanced LNG procurement portfolio by incorporating supply from regions including the Middle East, Asia-Pacific, and the US, while diversifying regional supply risks. JERA will also continue to strengthen its operational capabilities to enable flexible and timely responses during periods of supply-demand tightness, reinforcing its ability to deliver stable energy to Japan.